diff --git a/packages/angular_devkit/build_angular/src/browser/specs/license-extraction_spec.ts b/packages/angular_devkit/build_angular/src/browser/specs/license-extraction_spec.ts
deleted file mode 100644
index 056d6449a6fd..000000000000
--- a/packages/angular_devkit/build_angular/src/browser/specs/license-extraction_spec.ts
+++ /dev/null
@@ -1,30 +0,0 @@
-/**
- * @license
- * Copyright Google Inc. All Rights Reserved.
- *
- * Use of this source code is governed by an MIT-style license that can be
- * found in the LICENSE file at https://angular.io/license
- */
-import { Architect } from '@angular-devkit/architect';
-import { browserBuild, createArchitect, host } from '../../test-utils';
-
-
-describe('Browser Builder license extraction', () => {
-  const target = { project: 'app', target: 'build' };
-  let architect: Architect;
-
-  beforeEach(async () => {
-    await host.initialize().toPromise();
-    architect = (await createArchitect(host.root())).architect;
-  });
-  afterEach(async () => host.restore().toPromise());
-
-  // Ignored because license works when trying manually on a project, but doesn't work here.
-  it('works', async () => {
-    // TODO: make license extraction independent from optimization level.
-    const overrides = { extractLicenses: true, optimization: true };
-
-    const { files } = await browserBuild(architect, host, target, overrides);
-    expect(await files['3rdpartylicenses.txt']).not.toBeUndefined();
-  });
-});
diff --git a/packages/angular_devkit/build_angular/src/browser/tests/options/extract-licenses_spec.ts b/packages/angular_devkit/build_angular/src/browser/tests/options/extract-licenses_spec.ts
new file mode 100644
index 000000000000..50b29d23ee1b
--- /dev/null
+++ b/packages/angular_devkit/build_angular/src/browser/tests/options/extract-licenses_spec.ts
@@ -0,0 +1,45 @@
+/**
+ * @license
+ * Copyright Google Inc. All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+import { buildWebpackBrowser } from '../../index';
+import { BASE_OPTIONS, BROWSER_BUILDER_INFO, describeBuilder } from '../setup';
+
+describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
+  describe('Option: "extractLicenses"', () => {
+    it(`should generate '3rdpartylicenses.txt' when 'extractLicenses' is true`, async () => {
+      harness.useTarget('build', {
+        ...BASE_OPTIONS,
+        extractLicenses: true,
+      });
+
+      const { result } = await harness.executeOnce();
+      expect(result?.success).toBe(true);
+      harness.expectFile('dist/3rdpartylicenses.txt').content.toContain('MIT');
+    });
+
+    it(`should not generate '3rdpartylicenses.txt' when 'extractLicenses' is false`, async () => {
+      harness.useTarget('build', {
+        ...BASE_OPTIONS,
+        extractLicenses: false,
+      });
+
+      const { result } = await harness.executeOnce();
+      expect(result?.success).toBe(true);
+      harness.expectFile('dist/3rdpartylicenses.txt').toNotExist();
+    });
+
+    it(`should not generate '3rdpartylicenses.txt' when 'extractLicenses' is not set`, async () => {
+      harness.useTarget('build', {
+        ...BASE_OPTIONS,
+      });
+
+      const { result } = await harness.executeOnce();
+      expect(result?.success).toBe(true);
+      harness.expectFile('dist/3rdpartylicenses.txt').toNotExist();
+    });
+  });
+});